Asia Tech Wire (Jan 22) -- Sony Group Corp. has formally notified Zee Entertainment Enterprises Ltd to terminate the $10 billion merger between its Indian subsidiary and the Indian media conglomerate, Bloomberg reported.

In a letter sent to Zee earlier on Monday, Sony said the termination of the deal was due to non-fulfilment of the conditions of the merger agreement, the report said.

The decision is not public and Bloomberg expected Sony to disclose it to the exchange later.

Zee said in a regulatory filing late Monday that it had received notice from Sony that it was terminating the merger deal.

Sony is invoking arbitration against Zee and seeking termination fee of $90 million, claiming that Zee breached the merger agreement, the company noted.

Zee denied all of Sony's all claims and assertions regarding alleged breaches of the merger agreement, and said it "will take all necessary steps to safeguard the long-term interests of its stakeholders."

Sony Pictures Networks India (SPNI), Sony's India unit, and Zee signed the merger agreement in 2021, with the aim of creating a $10 billion media and entertainment giant in India.

However, the deal stalled as the two parties were at loggerheads over whether Zee CEO Punit Goenka would lead the merged entity.